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BEER_HANDLE t1_jeao1cv wrote

Your loan will just transfer to a bigger bank once it goes poof

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rumias OP t1_jeaoaol wrote

If you do it just right no bank will want to touch FRC if it goes under.

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asdffsdf t1_jeaqo3i wrote

Not sure if you're still joking but one way or another you would still be on the hook for those loans. Even if no one took over all of the assets the government would appoint someone to manage the bankruptcy.

They would then sell the loans independent of the other assets or liabilities, and the profits from selling the loans would partially pay any creditors or repay the government if the government bailed out the depositors.

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ErikInvest t1_jeaorh6 wrote

if a bigger bank want to buy this asset. IF.

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X_Fiery_Jack_X t1_jeasx17 wrote

Doesn’t have to be a bigger bank, basically your credit would be fucked because someone would buy the loan for Pennie’s on the dollar and rape your credit report until you paid it off for as much as they could get out of you. Sure you’d probably be able to settle for less than the full amount but not until you showed you weren’t going to pay in turn fucking your credit.

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ErikInvest t1_jeawcj1 wrote

You never worked in a bank before. Only bank bought another bank like ubs with cs but only with force of state government behind. Or your debit against that bank will be zero.

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X_Fiery_Jack_X t1_jeb60uc wrote

Lol I fucking work in a bank. It being a bank has no bearing whatsoever it’s an asset the bank owns and can sell to whoever they want. If the bank fails it’s assets like properties, equipment and yes loans will be sold off to pay the bond holders and other first tier folks. Equity is wiped out but you still owe money and that obligation will be sold to someone else who will come after you bank or not.

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Zero2Hero2MarginCall t1_jeasz0c wrote

You clearly don't know how companies who specialize in buying debt for pennies on the dollar to go after the owner of the debt actually work do you? It's literally an entire industry.

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ErikInvest t1_jeawn1n wrote

You can’t bought anything in a fail asset without the force of government behind. Welcome in the real world.

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